Revenue decelerated sharply, with Q2 2026 down 7.6% YoY, and gross margin compressed to 7.7% from 18.1% a year earlier, driving an operating loss of $47.9M.
Dream Finders Homes, Inc. (DFH) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 4.13B | 4.32B | 4.45B | 3.75B | 3.34B | 1.92B | 1.13B | 976.56M | 522.26M |
| Revenue Growth % | -12.2% | -2.89% | 18.75% | 12.15% | 73.73% | 69.69% | 16.1% | 86.99% | - |
| Cost of Goods Sold | 3.55B | 3.57B | 3.62B | 3.01B | 2.72B | 1.61B | 962.93M | 844.38M | 454.4M |
| COGS % of Revenue | - | 82.54% | 81.39% | 80.35% | 81.44% | 83.7% | 84.93% | 86.46% | 87.01% |
| Gross Profit | 579.57M | 754.77M | 828.58M | 736.77M | 620.2M | 313.58M | 170.88M | 132.18M | 67.86M |
| Gross Margin % | 14.02% | 17.46% | 18.61% | 19.65% | 18.56% | 16.3% | 15.07% | 13.54% | 12.99% |
| Gross Profit Growth % | - | -8.91% | 12.46% | 18.8% | 97.78% | 83.51% | 29.28% | 94.8% | - |
| Operating Expenses | 473.16M | 485.21M | 395.75M | 308.8M | 271.04M | 154.41M | 90.79M | 83M | 43.55M |
| OpEx % of Revenue | - | 11.22% | 8.89% | 8.24% | 8.11% | 8.03% | 8.01% | 8.5% | 8.34% |
| Selling, General & Admin | 473.16M | 485.21M | 395.75M | 308.8M | 271.04M | 154.41M | 90.79M | 83M | 43.55M |
| SG&A % of Revenue | - | 11.22% | 8.89% | 8.24% | 8.11% | 8.03% | 8.01% | 8.5% | 8.34% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 106.41M | 269.55M | 432.83M | 427.98M | 349.16M | 159.17M | 80.09M | 49.18M | 24.31M |
| Operating Margin % | 2.57% | 6.24% | 9.72% | 11.42% | 10.45% | 8.27% | 7.06% | 5.04% | 4.65% |
| Operating Income Growth % | - | -37.72% | 1.13% | 22.57% | 119.36% | 98.75% | 62.86% | 102.29% | - |
| EBITDA | 120.65M | 298.71M | 450.05M | 445.87M | 366.25M | 169.02M | 92.85M | 62.35M | 28.41M |
| EBITDA Margin % | 2.92% | 6.91% | 10.11% | 11.89% | 10.96% | 8.79% | 8.19% | 6.38% | 5.44% |
| EBITDA Growth % | -71.27% | -33.63% | 0.94% | 21.74% | 116.68% | 82.03% | 48.93% | 119.43% | - |
| D&A (Non-Cash Add-back) | 14.24M | 29.16M | 17.21M | 17.9M | 17.09M | 9.85M | 12.76M | 13.17M | 4.1M |
| EBIT | 110.38M | 284.1M | 437.85M | 404.43M | 356.19M | 162.72M | 85.38M | 48.51M | 23.94M |
| Net Interest Income | 0 | 0 | 0 | -1K | -32K | -672.17K | -871K | -221.45K | -682.15K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 1K | 32K | 672K | 870.87K | 221.45K | 682.15K |
| Other Income/Expense | 88.12M | 14.55M | 5.02M | -23.55M | 7M | 2.88M | 4.43M | -2.11M | -1.05M |
| Pretax Income | 194.53M | 284.1M | 437.85M | 404.43M | 356.16M | 162.05M | 84.51M | 47.07M | 23.26M |
| Pretax Margin % | 4.71% | 6.57% | 9.84% | 10.79% | 10.66% | 8.42% | 7.45% | 4.82% | 4.45% |
| Income Tax | 47.27M | 66.7M | 97.27M | 96.48M | 81.86M | 27.45M | 0 | 10.34M | 0 |
| Effective Tax Rate % | 24.3% | 23.48% | 22.22% | 23.86% | 22.98% | 16.94% | 0% | 21.97% | 0% |
| Net Income | 146.69M | 217.2M | 335.34M | 295.9M | 262.31M | 122.38M | 79.09M | 31.02M | 17.32M |
| Net Margin % | 3.55% | 5.02% | 7.53% | 7.89% | 7.85% | 6.36% | 6.98% | 3.18% | 3.32% |
| Net Income Growth % | -52.89% | -35.23% | 13.33% | 12.8% | 114.35% | 54.73% | 154.98% | 79.07% | - |
| Net Income (Continuing) | 147.26M | 217.4M | 340.58M | 307.94M | 274.3M | 134.59M | 84.51M | 36.73M | 23.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 29.54M | 31.04M | 26.94M | 13.07M | 12.97M | 24.08M | 31.94M | 30.47M | 28.93M |
| EPS (Diluted) | 1.60 | 2.14 | 3.21 | 2.66 | 2.32 | 1.27 | 0.85 | 0.34 | 0.19 |
| EPS Growth % | -49.83% | -33.33% | 20.68% | 14.66% | 82.68% | 49.41% | 150% | 78.95% | - |
| EPS (Basic) | - | 2.33 | 3.44 | 3.03 | 2.67 | 1.27 | 0.85 | 0.34 | 0.19 |
| Diluted Shares Outstanding | 91.88M | 101.3M | 100.3M | 106.03M | 106.69M | 92.52M | 92.52M | 92.52M | 92.52M |
| Basic Shares Outstanding | 91.66M | 93.11M | 93.51M | 93.07M | 92.75M | 92.52M | 92.52M | 92.52M | 92.52M |
| Dividend Payout Ratio | - | - | - | - | - | 19.03% | - | 26.75% | 67.61% |
Quick answers to the most common questions about buying DFH stock.
For fiscal year 2025, Dream Finders Homes, Inc. (DFH) reported total revenue of $4.32B. This represents a 727.7% increase compared to $522.3M in 2018.
Dream Finders Homes, Inc. (DFH) is profitable, generating $217.2M in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Dream Finders Homes, Inc. (DFH) reported an operating income of $269.6M, resulting in an operating profit margin of 6.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Dream Finders Homes, Inc. (DFH) generated $754.8M in gross profit for the year, representing a gross profit margin of 17.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression and demand softness
Metrics are mathematically derived from official filings.
Revenue Momentum Fades Sharply
DFH's revenue contracted 2.9% year-over-year on a trailing basis, with the latest quarter down 7.6% YoY, according to recent SEC filings, signaling a clear deceleration from the 37.1% growth seen in Q4 2024.
The deceleration is broad-based, with every quarter since Q4 2024 showing sequentially lower year-over-year growth rates, culminating in the -7.6% print in Q2 2026. This suggests that the company is facing demand headwinds in its core Sunbelt markets, likely due to elevated mortgage rates and affordability constraints. The lack of organic growth raises questions about whether the company can rely on acquisitions to offset cyclical weakness, as the integration of MHI may not be enough to sustain momentum.
Gross Margin Compression Undermines Model
Gross margin fell to 7.7% in Q2 2026 from 18.1% a year earlier, as reported in financial statements, reflecting a structural shift that appears tied to higher land option costs and increased sales incentives.
The dramatic 10.4 percentage point year-over-year decline in gross margin is alarming and suggests that the land-light model is not providing the pricing power needed to offset rising input costs. While the company's gross margin has historically been lower than peers like Champion Homes (26.4%) and Green Brick (31.2%), the recent collapse to single digits indicates that the company may be sacrificing margin to maintain volume. This trend, if sustained, could erode the fundamental profitability of the homebuilding segment and warrants close monitoring of lot option premiums and construction costs.
Operating Leverage Turns Negative
Operating income swung to a loss of $47.9 million in Q2 2026, down from a $57.9 million profit in the prior year quarter, based on reported figures, as SG&A costs remained elevated relative to shrinking revenue.
The negative operating leverage is stark: while revenue declined 7.6% YoY, SG&A expenses actually increased from $134.7 million to $128.4 million, a modest decline that was insufficient to offset the gross profit collapse. This indicates that the company's cost structure is not sufficiently flexible to adapt to a downturn, with fixed overheads like sales and marketing remaining sticky. The operating margin of -4.5% in Q2 2026 versus 5.0% a year ago highlights the fragility of the earnings model when volumes and margins compress simultaneously.
Net Income Resilience Masks Operating Weakness
Despite an operating loss, DFH reported net income of $27.7 million in Q2 2026, per the income statement, suggesting that non-operating items such as tax benefits or other income are masking underlying operational deterioration.
The divergence between operating income (-$47.9 million) and net income (+$27.7 million) is a red flag for earnings quality, as it implies a reliance on non-operating gains or tax credits to maintain profitability. This pattern is not sustainable if operating losses persist, and investors should scrutinize the components of other income and tax rates in the footnotes. The EPS of $0.26, while beating estimates, appears to be of lower quality given the operating context, and the 50% YoY decline in EPS growth underscores the deteriorating earnings power.
Cost Pressures Concentrated in COGS
Cost of goods sold consumed 92.3% of revenue in Q2 2026, up from 83.3% a year earlier, as per the income statement, indicating that construction costs and land option fees are the primary margin drain.
The sharp rise in COGS as a percentage of revenue suggests that the company is facing higher costs for labor, materials, and finished lots, which it has been unable to pass on to buyers. SG&A, while elevated, has remained relatively stable as a percentage of revenue, indicating that the cost problem is not in overhead but in the direct cost of homebuilding. This points to a structural issue with the land-light model, where the company is exposed to price increases from third-party developers without the buffer of owned land to control costs.
Q4 2024 Marks Peak, Then Steep Decline
The inflection point is Q4 2024, when revenue peaked at $1.6 billion and operating margin hit 10.6%, as reported in financial statements, followed by a continuous deterioration to a -4.5% operating margin by Q2 2026.
The Q4 2024 quarter represented the zenith of DFH's recent performance, with record revenue and margins, likely driven by strong demand and successful integration of acquisitions. Since then, the company has experienced a steady decline in both top-line growth and profitability, with the most recent quarter showing an operating loss. This inflection appears to be driven by a combination of cyclical housing market weakness and company-specific margin pressures, and the lack of a rebound in subsequent quarters suggests that the downturn may be more than a temporary blip.
Land-Light Model Faces Stress Test
The bull case for DFH's asset-light strategy is challenged by a 17.5% gross margin that is structurally lower than peers, as per the data, and the recent collapse to 7.7% suggests the model may not provide adequate protection in a downturn.
Short-sellers would argue that DFH's reliance on optioned lots exposes it to cost inflation without the offsetting benefits of land ownership, and the recent margin compression validates this concern. The company's operating margin of 6.24% TTM is well below the peer average, and with revenue declining, there is little evidence that the model can generate acceptable returns in a soft market. Furthermore, the low debt-to-equity ratio may be misleading, as off-balance-sheet land option commitments could represent hidden leverage that amplifies risk if the housing market weakens further.